Cepton, a manufacturer of LiDAR sensors, has signed a definitive agreement to be acquired by Japan-based Koito Manufacturing, a leading automotive tier 1 supplier, for USD 3.17 per share in an all-cash transaction. The deal is expected to close in Q1 2025 and is subject to approval by Cepton's shareholders, regulatory approvals, and other customary closing conditions.

The acquisition is expected to complement Koito's existing sensor technology roadmap while providing Cepton with financial stability and scalability to commercialize its LiDAR technology. After the transaction, Cepton will operate as a privately held indirect subsidiary of Koito in the US.

Analyst QuickTake: Koito Manufacturing has been a long-term partner of Cepton, having collaborated since 2017. Recently, Cepton announced a USD 10 million engineering service agreement with Kioto (May 2024) and signed a USD 100 million investment agreement with Koito in convertible preferred stock (October 2022).